Jim Cramer’s 5 Favorite Dividend Stocks
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Despite softer inflation data, the Federal Reserve has indicated it is ready to wait longer before initiating rate cuts. With inflation still elevated and the political environment heating up, income investors looking for stability are turning to reliable dividend stocks. A report from Achor Capital cites data from Davis Research and Hartford Funds, which shows that companies that pay dividends post higher returns on average than non-dividend-paying companies. From March 1972 through December 2010, dividend stocks returned 12.9% annually on average, while companies that didn’t pay dividends returned 8.6%.
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Jim Cramer has been discussing high-quality dividend stocks in his programs on CNBC over the past several months. Let’s look at some of the top dividend stocks he recommends:
Enbridge Inc
Jim Cramer has consistently recommended energy pipeline company Enbridge Inc. (NYSE:ENB) over the past several months. In May, during the ‘Lightning Round’ segment of his program on CNBC, Cramer said he likes Enbridge and trusts its management.
“I am one of the few people who like Enbridge down because I trust that management team,” Cramer said.
With an over 7% dividend yield, Enbridge is a high-yield dividend growth stock, as the company has increased its payout for 29 straight years. Last year, the company generated $10.72 billion in cash from its operations, an over 380% increase since 2014. Earlier this year, the company expected to grow its EBITDA by 7% – 9% through 2026, while distributable cash flow (DCF) is expected to grow at a 3% rate.
Wells Fargo
With a 2.3% dividend yield, Wells Fargo & Co (NYSE:WFC) is a notable bank dividend stock. When asked about Morgan Stanley during a recent program on CNBC, Cramer said MS has run “too much” and instead pitched Wells Fargo as a better buy.
“The only one in that group I’d still buy is Wells Fargo of Charlie Scharf (Wells Fargo CEO). That would be the stock to buy.”
Wells Fargo…
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